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An advertising agreement formalizes the arrangements between an advertiser and a provider of advertising space (for example, in a magazine, alongside a sports field, or on a website). In addition to price and placement, it regulates matters such as the delivery and terms of the advertisement, payment (possibly with a variable price), cancellation, liability, and force majeure. Customization is essential: a magazine requires a different agreement than a football club.
An advertising agreement governs the legal relationship between the advertiser and the provider of advertising space. In addition to price and the advertisement, it contains numerous other clauses.
General agreements
Both parties have rights and obligations: the advertiser pays the fee and provides the advertisement; the provider places it at the agreed location and for the agreed period. The agreement determines where and for how long an advertisement is placed and what conditions it must meet — for example, you can refuse advertisements that are 18+, offensive, or encourage gambling. It usually also specifies how the advertisement must be submitted.
In addition, the agreement regulates the price and payment. A down payment is often required, with settlement at a later date. The price may be partially variable: for example, if a football club performs well in the cup tournament, the advertiser pays more; conversely, if the website uptime is too low, the advertiser may receive a discount.
Special arrangements
Take special situations into account. When the football league was suspended due to the coronavirus and advertisements were no longer displayed, this sparked a lot of discussion. You can agree in advance on what happens in the event of a cancellation: a partial refund, or replacement with visibility on social media.
Some advertisers want a cancellation clause to be able to terminate a campaign; the provider may also sometimes wish to cancel. In the cancellation clause, you specify how cancellation works, whether money will be refunded, and under what conditions.
Liability and force majeure
The provider of advertising space runs the risk of liability claims. Logically, he wants to be able to recover paid damage claims from the advertiser — pay attention to the validity of exemption clauses. A force majeure clause is also useful: it defines what constitutes force majeure and what the consequences are — this was widely used during the pandemic.
Frequently Asked Questions
What is stated in an advertising agreement?
Agreements regarding placement, period, terms and delivery of the advertisement, the price and payment, and stipulations regarding cancellation, liability, and force majeure.
Can I cancel an advertisement?
Only if the agreement contains a cancellation clause that permits this, including the conditions and any refund. Establish this in advance.
What if an event or placement is cancelled?
A force majeure clause can regulate what happens in such a case, for example, partial reimbursement or substitute visibility. Without such a clause, disputes quickly arise.
A tailored advertising agreement
An advertising agreement is custom-made. The legal experts at MKB Juristen draft a document tailored to your situation, in which you only need to fill in a few details at a time. View our expertise in contract law or schedule a free intake consultation .
